Risk Analysis Of Commercial Bank Pre-loan Investigation

Credit risk is one of the major risks faced by commercial banks in carrying out credit business and a key component of credit business for the commercial bank to make pre-loan investigation to identify credit risks in credit business.It is also an internal requirement for the commercial bank in our country to reach the standard of risk management system of advanced international banks and realize comprehensive risk management.In the actual operation of credit business of commercial banks in China,due to poor pre-loan investigation and inaccurate credit risk recognition,commercial banks are confronted with risks and losses,which harms the survival and development of commercial bank.This paper starts from the theoretical method and model of pre-loan investigation to make analysis,through case analysis,combined with the current status of the pre-loan investigation of commercial banks in China,to discuss how to use effective investigation method and model to identify and analyze credit risk in credit business practice.The author is a front-line bank employee,gathering bad credit assets cases in actual work,and making case analysis combined with theoretical model,to provide reference for improving the pre-loan investigation of basic credit business of commercial banks.The study is divided into six parts.Chapter I is the introduction section,which introduces the research background,and illustrates the importance of pre-loan due diligence for credit risk management.Through the introduction of the current situation of credit business of commercial banks and the development of credit risk management,it introduces the research framework and research method of the paper and states the innovative points and deficiencies.Chapter II regards institutional background and literature review.It puts forward the basic theoretical frame of pre-loan investigation of commercial banks by probing into Basel New Capital Accord and COSO Enterprise Risk Management——integrated framework;meanwhile,through comparing the research results at home and abroad,it introduces the research approach: applying theoretical model into the actual operation of pre-loan investigation.Based on four kinds of risk factors of credit risk faced by commercial banks,in Chapter III,the author conclude a series of theoretical methods and models applicable to pre-loan due diligence.Chapter IV analyzes the status quo and problems existed in the due diligence of commercial banks in China,and gives corresponding solutions.In Chapter V,the author takes bad credit capital in daily life as examples,and examines these cases,to find that through a series of scientific pre-loan investigation,judgment and identification can be made on the credit risk of the borrower,to effectively prevent potential credit risks.Chapter VI summarizes of the whole paper,which gives enlightenment and directions to this article.